Charles Edwards: it is likely that $BTC will 10X within the next 5 years
Asset Manager Charles Edwards, using a rare indicator called Bitcoin Energy Value, predicted a rise in the price of Bitcoin to $ 100,000 over five years.
The indicator monitors the price of Bitcoin using two metrics to determine the "value" - the hash of the network and the effectiveness of mining equipment.
"Based on a conservative estimate of Bitcoin's Energy Value, it is likely that $BTC will 𝟭𝟬𝗫 within the next 5 years. A thread forecasting Bitcoin's long-term price using Energy Value,"
Edwards wrote on Twitter.
The asset manager noted that over the past 5 years, the hashrate of the first cryptocurrency has grown exponentially, but if at the moment this indicator is growing at about 135% per year, then by 2025 it will drop to 20% per year. The situation is similar with the efficiency of equipment for Bitcoin mining: it also grew steadily, but the average annual growth of this indicator decreased from 400% to 50% last year.
"Assuming this relationship holds, but allowing for some market saturation, we can estimate that the HR growth rate drops from ~135% p.a. today to ~20% p.a. in 2025,"
Edwards concluded.
The asset manager also suggested that in the long term, the BTC could reach $ 200,000.
The other day, Bank of England economist Peter Zimmerman said that the constant increase in the value of Bitcoin is gradually turning it into a means of accumulation.
My #Bitcoin Forecast
— Charles Edwards (@caprioleio) February 16, 2020
🚀Bitcoin $100K within 5 years
Based on a conservative estimate of Bitcoin’s Energy Value, it is likely that $BTC will 𝟭𝟬𝗫 within the next 5 years.
A thread forecasting Bitcoin’s long-term price using Energy Value.
1/n pic.twitter.com/oNJfLDoOaq
